Federal Budget 2024-25 – SMSF Implications

From purely a superannuation perspective, the 2024 Federal Budget has been a bit of a non-starter. Only two SMSF related announcements were made: the first relating to the deeming test for age pensions and the second relating to payment of SG contributions on Government funded Paid Parental Leave.

Deeming rates 2024/25

The deeming thresholds are indexed each 1 July by reference to the increase in the Consumer Price Index.  By contrast, the deeming rates are determined by the Federal Government. 

After the Budget, the new thresholds for 2024/25 were released as follows:

$62,600 for singles (previously $60,400) and $103,800 for couples (previously $100,200).

For single age pensioners the first $62,600 of financial assets will be deemed to earn 0.25% with the balance being deemed to earn 2.25%.

For married pensioners, the first $103,800 of their combined financial assets will be deemed to earn 0.25% with the balance being deemed to earn 2.25%.

Superannuation contributions 2025

As to the second announcement – from 1 July 2025 the Government will pay superannuation contributions at the rate of 12% on Government funded Paid Parental Leave where the leave relates to births or adoptions which occur on or after 1 July 2025.